Glossary
Parent Company
The company that controls one or more subsidiaries of a group is referred to as The Parent Company.
Partnership
A trading partnership is where two or more entities have a business together and are both jointly liable for the business debts.
Partnership Voluntary Arrangement (PVA)
A Partnership Voluntary Arrangement is an arrangement that a partnership will have with its creditors to resolve its current historic debt issues.
Pay As You Earn (PAYE)
Pay as You Earn is the tax deducted from an employees wages by the employer, which is then declared to and paid to HM Revenue and Customs by the employer.
Pay in Lieu Of Notice (PILN)
Pay in Lieu of Notice is the amount of pay an employee receives instead of having (and working) a notice period and have stopped working.
Pension Fund
This is a retirement scheme where monies are paid into the scheme with the aim of building sufficient reserves to draw when a person has reached a certain age.
Personal Guarantee
A personal guarantee is an obligation for an individual to pay an amount when the original borrower is unable to adhere to the terms of the loan.
Phoenixism
The term ‘phoenixism’ typically refers to the scenario where a company is liquidated and subsequently its business is carried on under the same or broadly the same ownership via a new entity.
Preferences
A preference (in an insolvency context) occurs when one creditor is put in a more beneficial position to the others, often to the detriment of the other creditors. It usually involves some creditors being paid and others not being paid when it was known that there was insufficient funds to pay all of them.
Preferential Creditor
A Preferential creditor is a creditor that will rank before some other classes of creditor. This is typically employees who have arrears of wages (up to £800) and any accrued holiday pay.
Profit and Loss Account
A profit and loss account is a financial statements showing the revenues, costs and expenses of a period of time to determine the profitability.
Proof of Debt
A proof of debt form is a document that a creditor (person who is owed money) completes to formally lodge their claim in a bankruptcy, liquidation, administration or arrangement.
Provisional Liquidator
A provisional liquidator is a person appointed by Court to take control of a company and usually occurs after the presentation of a winding up petition, when the company’s assets require safeguarding.
Proxy Form
A proxy form is a document which authorises an individual to represent another (or organisation) on a particular matter (decision or meeting) and can specify how they are to vote on certain issues.
Proxy Holder
A proxy holder is the person who is authorised to represent another person (or organisation) on a particular matter, decision or at a meeting.
Public Examination
A public examination (in insolvency) is where a person will be summoned to attend court to give answers about matters which are relevant for the administration of the insolvent estate. Failure to attend may result in the arrest of the individual.
Public Limited Company
A public limited company (often called a PLC for short), is the legal name for a company that has offered its shares for sale to the public, it usually uses the letters PLC after name and its shares can be sold on the stock exchange.
